During the Past 30 Years, Income Inequality in the United

Multiple Choice

During the past 30 years, income inequality in the United States has increased in part due to rapid technological change.How does technological change contribute to income inequality?

A) Advancements in technology displace skilled and unskilled workers in certain fields, leading to higher unemployment rates.
B) Technology complements the skills of the well-educated while rendering redundant the labor services of unskilled and low-skilled workers. This causes a decline in the wages of low and unskilled workers relative to other workers.
C) The opportunity cost of investing in technology is investments in human capital. The resulting decrease in labor's marginal productivity has led to lower wages.
D) Technological change favors the owners of capital and since high-income individuals tend to own capital, income inequality is further exacerbated.